Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

September 03, 2009 10:20 ET

Silvermet Inc. Signs a Heads of Agreement With Korea Zinc Company Ltd.

SEOUL, KOREA--(Marketwire - Sept. 3, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) is pleased to announce the signing today of a Heads of Agreement with the Company and Korea Zinc Company Ltd., one of the world's pre-eminent zinc smelting and processing companies based in Seoul, Korea. The terms of the agreement are as follows:

Highlights:

- Korea Zinc will complete a private placement into Silvermet of $3.0 million at $0.10/share, subject to
final due diligence

- Korea Zinc and Silvermet will form a technical committee for current and future operations

- Korea Zinc has agreed to finance and construct a second and third kiln in Turkey, subject to a final feasibility study

- Korea Zinc will nominate a member to the Board of Directors of Silvermet

- Korea Zinc will purchase 100% of Silvermet's zinc concentrate output from all plants for a period of 10 years, renewable by mutual agreement

The agreement is subject to final due diligence and respective Board and regulatory approval.

"We are extremely pleased and proud of our association with Korea Zinc Company, who are making this significant move to align themselves with Silvermet and be part of the EAFD business in Turkey," said Stephen G. Roman, Silvermet's Chairman & CEO

"With the financial backing and tremendous technical expertise of Korea Zinc, Silvermet will become a significant processor of EAFD and producer of zinc concentrates," said Mr. Roman.

About Silvermet

Silvermet is focused on producing zinc, lead, and other by-products from the recently acquired assets of Metox A.S. in Turkey. These assets are currently in production and undergoing a modernization to increase throughput and efficiency.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Silvermet Inc.
    Stephen G. Roman
    Chairman & CEO
    (416) 203-8336
    (416) 368-5146 (FAX)
    or
    Silvermet Inc.
    Rein A. Lehari
    President & COO
    (416) 203-8336
    www.silvermet.com